RYE, N.Y., March 31, 2011 /PRNewswire/ -- Jarden Corporation (NYSE: JAH) today announced that it has successfully completed a new $1.275 billion senior credit facility. At closing, funds drawn on the new facility and cash on hand were used to retire all the outstanding debt under Jarden's prior senior credit facility.
"This is an outstanding transaction, providing Jarden with increased financial flexibility under attractive terms, while simultaneously extending our maturity profile and reducing our overall cost of debt," said Martin E. Franklin, Chairman and Chief Executive Officer of Jarden Corporation. "We are delighted with the results of this opportunistic refinancing. The debt markets have shown their continued support of our disciplined growth strategy, the consistent and strong performance of our market leading brands, our focus on operational excellence and the strong cash flow produced by the business. We intend to continue to leverage our solid financial platform to support our long-term growth initiatives."
The new $1.275 billion senior credit facility is composed of:
- a $500 million senior secured term loan B facility maturing in March 2017, which is subject to extension to 2018 under certain conditions, bearing interest at certain selected rates including an annual rate equal to LIBOR, which is not subject to a floor, plus a spread of 300 basis points;
- a $525 million senior secured term loan A facility maturing in March 2016 bearing interest at certain selected rates including an annual rate equal to LIBOR, which is not subject to a floor, plus a spread of 225 basis points; and
- a $250 million senior secured revolving credit facility (including a multi-currency component) maturing in March 2016 bearing interest at certain selected rates including an annual rate equal to LIBOR, which is not subject to a floor, plus a spread of 225 basis points. The revolver was undrawn as of the closing date of the new credit facility.
The refinancing will be accretive to earnings based on the reduction of interest expense from the lower interest rate spreads.
Jarden Corporation is a leading provider of niche consumer products. Jarden operates in three primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, Aero®, Berkley®, Campingaz® and Coleman®, ExOfficio®, Fenwick®, Gulp!®, K2®, Marker®, Marmot®, Mitchell®, Penn®, Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene®, Volkl® and Zoot®; Consumer Solutions: Bionaire®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam®, VillaWare® and White Mountain®; and Branded Consumables: Ball®, Bee®, Bicycle®, Billy Boy®, Crawford®, Diamond®, Dicon®, Fiona®, First Alert®, First Essentials®, Forster®, Hoyle®, Kerr®, Lehigh®, Leslie-Locke®, Lillo®, Loew Cornell®, Mapa®, NUK®, Pine Mountain®, Quickie®, Spontex® and Tigex®. Headquartered in Rye, N.Y., Jarden has over 24,000 employees worldwide. For more information, please visit www.jarden.com.
Note: This news release contains "forward-looking statements" within the meaning of the federal securities laws and is intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's adjusted earnings per share, the outlook for the Company's markets and the demand for its products, estimated sales, segment earnings, earnings per share, cash flows from operations, free cash flow, future revenues and gross, operating and EBITDA margin improvement requirement and expansion, organic growth, the success of new product introductions, growth in costs and expenses, the impact of commodities, currencies and transportation costs and our ability to manage our risk in these areas, and the impact of acquisitions, divestitures, restructurings, and other unusual items, including Jarden's ability to integrate and obtain the anticipated results and synergies from its consummated acquisitions. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in the Company's periodic and other reports filed with the Securities and Exchange Commission.
SOURCE Jarden Corporation